Our Informer

There is now another reason for North Carolina property owners to worry about hurricanes. A so-called “Beach Plan” approved by the House this week would have a 10 percent surcharge placed on property insurance should a devastating storm hit the North Carolina coast. If damage exceeds $2 billion, we all pay.

The debate in the House had several legislators asking why property owners throughout the state should be liable for multi-million beachfront homes built in threatened locations by wealthy owners. Rep. Pat McElrath, a Republican from coastal Carteret County, led the opposition and attempted to amend the bill to up the threshold for liability. Democrats, led by Rep. Hugh Hollimon, the sponsor, defeated the amendment and sent the bill to the Senate with a 61-52 vote. The argument of supporters insisted that a state reinsurance plan is required to prevent insurance companies from leaving the state. More property owners are turning to the state plan to avoid huge premiums charged by commercial insurers.

Rep. Ray Warren voted to approve the bill. Reps. Mark Hilton, Mitchell Setzer, Hugh Blackwell, and Edgar Starnes cast “no” votes.

A TORTUROUS PATH: Now we have it…now we don’t. Rumors about the state budget were circulating hourly in the General Assembly this week. Gov. Beverly Perdue again leaned on House and Senate leaders to send her and budget. But the process remained deadlocked over the revenue plan. House and Senate finance chairs agree more revenue is needed. The question is how much and where to find it.

House leaders want a temporary half-cent sales tax increase and a boost on the income tax rate paid by the state’s most wealthy. Senators want to revise the state code, spreading the sales tax to services and lowering the rate. The governor wants a one-cent sales tax increase, with additional taxes on tobacco and alcohol (the sin taxes).

On Wednesday the legislators approved extension of a continuation budget that has state spending at 84 percent of budget. They have set a new deadline of July 31. In the meantime, the Appropriations Conferees continue to review budgets and make cuts, some of which will never be restored. Public radio states, including that at Isothermal Community College, got the ax.

VILLAGE OF LAKE JAMES: Legislators on a special commission to oversee the establishment of new municipalities were to meet in Burke County to consider the application on behalf of the Village of Lake James which would be located just west of Morganton. If approved, the new incorporated community will receive Powell Bill funds and other appropriations from the state for roads and infrastructure. Four years ago an application was received from organizers seeking to establish a town in Lincoln County. Legislators, led by then Rep. Joe Kiser, rejected the application of West Norman.

The division among Catawba County Republicans already is generating reports of candidates seeking to oust incumbents. For the new leadership of the GOP organization in the county, it’s payback time.

Shawn Clark, a Hickory attorney, has started raising money for a primary campaign in the District Attorney’s race in 2010. The incumbent is Jay Gaither, a son-in-law of businessman Dean Proctor. Proctor supported Democrat Daniel Johnson in the last congressional race. Payback time for Proctor and Gaither.

The right-wing Republicans in charge of the county organization also have put a target on the back of County Commission Chair Kitty Barnes. She sought to replace Sen. Austin Allran last year. Payback time, with school board member Sheri Butler in opposition.

Mainstream Republicans are also becoming proactive. County Commissioner Dan Hunsucker is said to be preparing for a race to replace Mark Hilton in the House of Representatives. Democrats also are talking to potential candidates. Hunsucker is in a position to know what an ineffective legislator can cost the county. Hilton and Congressman Patrick McHenry are central figures in the current party leadership. Reportedly they also have been talking to people to replace incumbent commissioner Barbara Beatty and Chief Deputy Coy Reid who is expected to seek the office of Sheriff.

APPLE SAUCE: Although the Catawba County site for the new Apple center is not in his district, officials from Apple turned to Rep. Ray Warren for help in getting the incentives approved in the Legislature. Warren is closely tied to House Speaker Joe Hackney and powerful Rules Chairman Bill Owens and Majority Leader Hugh Hollimon.

It was Warren who spoke on the House floor when the incentives package was up for a vote. The county’s other Legislative representatives voted for the bill, but took no role in promoting the bill.

Some observers are saying that the $1 billion investment in the 500,000 facility would push Maiden’s tax base almost to that of Hickory. This reflects the trend of the County’s growth to the south. However Hickory realtors are hoping some of the Apple employees will look to Hickory for homes as have some of the personnel at the Google facility in Lenoir. A number of the Target employees have purchased homes in the Mountain View area.

REMEMBERING SUZIE JEFFERS: Suzanne Kramer Jeffers died last week after an extended illness. Dr. Jeffers was professor of English literature at Lenoir-Rhyne University and a longtime resident of Hickory. She was a daughter of Ted Kramer, head of the Kayser-Roth Hosiery Co. operations in Hickory for many years, and Estelle Kramer who was an owner of the Hickory Costume Shop in downtown Hickory during the 1950s and 1960s. Ted Kramer was the founder of what is now the Western Piedmont Symphony. Her husband Charles was the longtime director of the Hickory Community Theater, the second oldest community theater in North Carolina. The warmth and sparkle of Suzanne Jeffers will be missed.

Another Catawba County native is moving into a top position in North Carolina government. Michael Houser, a Fred T. Foard High School graduate and whose parents still live in the Banoak area, has been named Deputy Commissioner for the N.C. Department of Revenue. Lanier Cansler, now the head of Health and Human Services, is a native of Newton, and Labor Commissioner Cherie Berry is a native of Maiden and still maintains her home in Newton. Cansler and Berry are Republicans.

Houser will continue to handle legislative affairs for the Revenue Department, but also will be over corporate tax programs. Houser formerly served as a lobbyist for the N.C. Association of Educators. He is well-respected in government circles.

HOPEFUL TREND? Reactions to the news feature on the controversial bullying bill in the Hickory Daily Record last week were surprising to some. The majority of people who filed online comments supported the bill and expressed no sympathy for the Catawba County legislators who opposed it. Negative comments were especially directed at Rep. Mark Hilton who said protecting children over alleged sexual orientation would lead to legalizing gay marriage.

Note: Hickory City Schools policies already include sexual orientation and gender in the list of issues that would be bullying offenses. In Hickory, the bill is no big deal. Pastors of fundamentalist churches in Alexander County have stirred the hornet’s nest.

WHEN THE ICE BREAKS … This week the House and Senate budget negotiators were frozen in place, with no agreement over a revenue stream to support a 2009-10 bill.

The House submitted a $17.4 billion plan with $700 million in new taxes and fees. The Senate and the Governor want another $700 million. The Senate did capitulate and agree to a continuation budget that cuts spending to 85 percent of the current schedule and expires in two weeks. This is a signal that next week may be the week. Look for the rollout of Senate Bill 202 next Monday.

THE A DAY FOR CATAWBA COUNTY: Excitement is building in the Maiden area. Monday Apple Inc. is expected to announce it will build a server operation in the Maiden area just off Highway 321 near the Lincoln County line. Incentives given by Catawba County will be rolled out about the same time. Reportedly they will be less than those given by Caldwell County to lure Google.

The New York Times has described the server farms as 21st century manufacturing. The Hickory area could be poised to develop a cluster of support businesses with two major operations by Google and Apple. Catawba County’s cultural attractions and the Hickory airport were said to be deciding factors in Apple’s decision.